Nepal Bill Targets Double State Benefits for Constitutional Office-Bearers

Nepal's government is moving to close a loophole that allows officials in constitutional bodies to collect both their current benefits and pensions from previous government service. A bill registered in Parliament seeks to amend the Remuneration, Conditions of Service and Facilities of Office Bearers of Constitutional Bodies Act, 1996.

The proposed amendment introduces a new sub-section to prevent anyone already receiving or eligible for a government pension from drawing it while serving as a chief office-bearer or office-bearer of a constitutional body. The Prime Minister’s Office stated this change is in response to a Supreme Court directive issued in January 2017.

The Supreme Court's order followed a 2015 writ petition filed by former Public Service Commission members who were denied pension recognition for their prior government service after their tenure in the constitutional body ended. The court ruled that benefits could not be arbitrarily reduced and overturned previous Cabinet decisions on pensions and service conditions for these officials.

Previously, the law lacked clarity on whether officials in constitutional positions should receive benefits tied to those posts or continue their existing pensions. A 2015 Cabinet decision requiring officials to choose between their salary and pension, and to repay any excess double benefits received, was never codified into law. The government now aims to clarify these pension rules through legislation, preventing officials from receiving overlapping financial benefits from state coffers.

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The provision was introduced in line with a directive order issued by the Supreme Court.